News + updates + recent press
The Presidentially-declared COVID-19 National Emergency Ended. Here's what it means for Agency-specific Loss Mitigation.
The United States Senate passed a resolution to end the National Emergency for COVID-19 on March 29, 2023, and the President signed it on Monday, April 10, ending the emergency earlier than May 11, 2023 as previously announced. Now that the National Emergency has ended, it is important to understand the implications for servicing, default, and loss mitigation. Below outlines the significance behind the ending of the National Emergency. This post includes Agency-specific updates covering:
Additional Loss Mitigation Resources
On December 30, 2022, New York Governor Kathy Hochul signed the “Foreclosure Abuse Prevention Act” into law. This law came into effect immediately. The legislation is entirely unchanged from proposal to enactment.
Key takeaways from the new law are as follows:
Questions? This post was prepared by Jacqueline F. McNally, Esq. Contact us here.
Failure of a Mortgagee to File a Statement of Claim in a Deceased Borrower’s Probate Voids Right to Collect a Deficiency, discusses the essentiality that a mortgagee files a claim to preserve entitlement to impose liability on the estate due to an existing or potential deficiency. While it was the Florida Supreme Court that set this precedent in 1940, it was the United States Supreme Court’s decision in Pope that provided clarity 48 years later regarding the importance of notice to creditors against the backdrop of the Fourteenth Amendment.
Failure of a Mortgagee to File a Statement of Claim in a Deceased Borrower’s Probate Voids Right to Collect a Deficiency
It is well settled law that a mortgagee’s lien is an exception to Statute of Nonclaim set forth in Florida Statute, section 733.710, which bars any claim regardless of notice after two years from the date of the decedent’s death. Florida Statute 733.710(3) provides that a duly recorded mortgage remains intact and fully enforceable notwithstanding the lienholder’s failure to file a claim in the probate.
Why then should a mortgagee file a claim in a deceased borrower’s probate action?
The answer to this question is best answered by way of review of a Florida Supreme Court decision, In re Comstock’s Estate, dating all the way back to 1940.
In response to Hurricane Ian, PLG has closed its Tampa, Florida office effective Wednesday, September 28 until further notice for the safety of our employees. At this time, the firm’s Florida operations remain unimpacted and general business continues uninterrupted via our office in Tallahassee and remote work authorization for potentially impacted employees. PLG's servers are protected, operational, and data redundant per our Business Continuity Plan. At this time, the firm anticipates remaining fully operational and available for client interfacing with little to no impact on day-to-day operations.
PLG is also monitoring court closures in response to the hurricane and will update clients as needed regarding rescheduled hearings, trials, sales, and other delays related to the impact of Hurricane Ian. Click here to see a list of current closures provided by our vendor Provest. Everyone impacted and those in the path of Hurricane Ian are in our thoughts and prayers.
Padgett Law Group (“PLG”) through its attorney, Seth J. Greenhill, Esq., successfully obtained a rare win for creditors in Federal Court by obtaining sanctions against a pro se litigant who filed a frivolous appeal. This aggressive advocacy on behalf of PLG’s client was necessary to put an end to this vexatious litigation and contributes to building case law that will assist other creditors’ rights attorneys in defense of their clients.
“The key takeaway is that it is critical to establish the record in the original litigation. This provides notice to the pro se appellant,” said Mr. Greenhill. He continued, “This is a requirement in order to have sanctions imposed. In addition, it is vital to review the appellant brief in order to determine if the issues have already been disposed of.”
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